7 7.1.3 Estimate Costs: Outputs .1 Activity Cost Estimates CHAPTER 7 - PROJECT COST MANAGEMENT Activity cost estimates are quantitative assessments of the probable costs required to complete project work. Cost estimates can be presented in summary form or in detail. Costs are estimated for all resources that are applied to the activity cost estimate. This includes, but is not limited to, direct labor, materials, equipment, services, facilities, information technology, and special categories such as an inflation allowance or a cost contingency reserve. Indirect costs, if they are included in the project estimate, can be included at the activity level or at higher levels. .2 Basis of Estimates The amount and type of additional details supporting the cost estimate vary by application area. Regardless of the level of detail, the supporting documentation should provide a clear and complete understanding of how the cost estimate was derived. Supporting detail for activity cost estimates may include: · Documentation of the basis of the estimate (i.e., how it was developed), · Documentation of all assumptions made,